BILL ANALYSIS Ó SENATE COMMITTEE ON TRANSPORTATION AND HOUSING Senator Jim Beall, Chair 2015 - 2016 Regular Bill No: AB 2796 Hearing Date: 6/28/2016 ----------------------------------------------------------------- |Author: |Bloom | |----------+------------------------------------------------------| |Version: |4/4/2016 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant|Erin Riches | |: | | ----------------------------------------------------------------- SUBJECT: Active Transportation Program DIGEST: This bill establishes a permanent set-aside in the Active Transportation Program (ATP) for planning and non-infrastructure projects. ANALYSIS: The ATP was established under the state Department of Transportation (Caltrans) pursuant to the 2013-14 budget agreement. The ATP consolidated part or all of several existing programs and accounts, including the state Bicycle Transportation Account, the state and federal Safe Routes to Schools (SRTS) programs, the federal Transportation Alternatives Program, and the state Environmental Enhancement and Mitigation Program. These programs and accounts totaled approximately $130 million per year. The budget agreement directed funds to be awarded by the California Transportation Commission (CTC) through a competitive process to urban regions (40%), small urban and rural regions (10%), and statewide (50%). The budget agreement directed the CTC to develop program guidelines in consultation with a designated ATP working group. It directed that a minimum of 25% of overall ATP funds must benefit disadvantaged communities (DACs). It also guaranteed SRTS at least $24 million per year, for three years; of this amount, a minimum of $7.2 million was to be available for non-infrastructure program needs, including the continuation of technical assistance by the state. AB 2796 (Bloom) Page 2 of ? The 2017 ATP guidelines adopted by the CTC earlier this year cover fiscal years 2019-20 and 2020-21; projects will be adopted early next year. The 2017 guidelines set aside a maximum of 2% of funds in the statewide component, and in the small urban and rural component, for active transportation plans in DACs. A large metropolitan planning organization may set aside up to 2% of its funding for active transportation plans in DACs. This bill: 1)Requires, for each category (urban, small urban and rural, and statewide), at least 5% of funds to be awarded for planning and community engagement for active transportation in DACs. 2)Requires, for each category, at least 10% of funds to be programmed for non-infrastructure activities, including activities related to SRTS. If a project includes both infrastructure and non-infrastructure components, only the portion used for non-infrastructure shall count toward the 10%. 3)Requires that if applications submitted in a funding cycle are not sufficient to exceed the minimum percentages required, the applicable funds may be spent for other authorized purposes. COMMENTS: 1)Purpose. The author states that this bill aims to address the competitive disadvantage of planning and non-infrastructure projects in the ATP grant process, which has discouraged under-resourced jurisdictions from applying for these grants. This bill seeks to create a funding ratio that more accurately reflects the proportion of applications for planning and non-infrastructure projects relative to infrastructure projects. Specifically, the author states that this bill enables planning and non-infrastructure projects to compete fairly in ATP by designating a set-aside for them. 2)Background. This committee was closely involved in the negotiations to establish the ATP in the 2013-14 budget agreement. The working group conducted extensive discussions about how large a set-aside to create for SRTS and for planning and non-infrastructure projects. The compromise eventually reached was to set aside a minimum of $24 million AB 2796 (Bloom) Page 3 of ? for SRTS for three years, with a set-aside within SRTS of at least $7.2 million for non-infrastructure program needs. This bill establishes a permanent set-aside of 15% in each of the three categories, of which 10% is allocated to non-infrastructure activities (including SRTS) and 5% is allocated to planning activities. 3)Where are we now? The author states that the CTC and Caltrans have put particular emphasis in the first two grant cycles on funding infrastructure grants, and that non-infrastructure and planning proposals have struggled to compete. The author states that in the first grant cycle, roughly 8% of overall funding went to planning and non-infrastructure grants, while in the second cycle, less than 5% of program funds went to grants of this type. The author states that planning is a huge need for active transportation, particularly in low-resourced communities. According to the author, non-infrastructure activities are critical to engage and excite residents to walk and bike more, as car-free street events like CicLAvia and programs like SRTS have demonstrated. However, the most recent guidelines adopted by the CTC reduce the non-infrastructure set-aside to 2%. 4)What are planning and non-infrastructure activities? Planning funds assist communities to, for example, create a local bicycle or pedestrian plan, while non-infrastructure activities often comprise a component of an infrastructure project. One of the larger solely non-infrastructure allocations in the 2015 funding cycle was for $966,000 in 2016-17 to the San Mateo County Office of Sustainability for its Sustainable Transportation Encouragement Project (STEP). According to the application, STEP will be implemented by a partnership between the office and Redwood City 2020, a community collaborative which includes Redwood City School District. The application states a need for outside grant funding due to a 40% cut in funding to the SRTS program, which is forcing them to cut back "education and encouragement services." 5)A big piece of a small pot. The ATP is funded at approximately $120 million per year and programmed in four-year cycles. The bulk of program funding comes from the federal FAST Act. The ATP is extremely popular; in the second cycle, awarded in 2015, more than 600 applications were submitted, requesting over $1 billion in funds. Approximately AB 2796 (Bloom) Page 4 of ? 200 projects were awarded a total of $359 million. With demand exceeding supply by so great an amount, the question arises of whether a smaller set-aside might help focus limited funds on infrastructure projects. 6)Making planning a priority. Writing in support of this bill, a coalition of bicycle and pedestrian organizations state that, "The vast majority of communities across the state lack walk, bike, or active transportation master plans, and rely on grants from the ATP to develop plans that help them identify and build community support for future projects." According to the Office of Planning and Research's 2013-14 Annual Planning Survey Results, less than 50% of responding cities and counties reported having adopted a Bicycle Master Plan and only about 13% of respondents reported a Pedestrian Master Plan. This dearth of master plans raises the question of whether a larger set-aside for planning may be appropriate. 7)Opposition arguments. The CTC has taken an "oppose unless amended" position on this bill. The CTC writes that "while the Commission acknowledges the value in non-infrastructure active transportation projects, particularly those that are combined with infrastructure projects, it has had difficulty implementing grants awarded for those purposes." The CTC states that statutory funding and program requirements and restrictions have led to frustration and time-consuming disputes between Caltrans and applicants regarding non-infrastructure projects. The CTC notes, however, that this difficulty might be mitigated through clearer legislative guidance on the types of non-infrastructure guidance eligible for ATP funds. 8)Amendments. To address some of the concerns outlined in the comments above, the author will accept the following amendments in committee: a) Add legislative intent language relating to the goals of the ATP. b) Specify that planning and construction of walking and biking infrastructure and implementation of behavioral-change strategies are part of the mission of the ATP. c) Revise the planning and non-infrastructure set-aside to AB 2796 (Bloom) Page 5 of ? comprise 10% of total available ATP funds. Of the set-aside, at least 50% must be designated for planning activities to develop comprehensive active transportation master plans, including for community engagement activities to engage residents in relation to these plans. Funding programmed for the ATP Resource Center at Caltrans shall not count toward the 10%. d) Allow an applicant to seek CTC approval of a letter of no prejudice allowing the applicant to spend its own funds for a project programmed in a future year and to be reimbursed later by the CTC. e) More clearly define non-infrastructure activities. Related Legislation: SB 99 (Committee on Budget and Fiscal Review, Chapter 359, Statutes of 2013) and AB 101 (Committee on Budget and Fiscal Review, Chapter 354, Statues of 2013) - created and funded the ATP. Assembly Votes: Floor: 78-1 Appr: 20-0 Trans: 16-0 FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No POSITIONS: (Communicated to the committee before noon on Wednesday, June 22, 2016.) SUPPORT: California Bicycle Coalition (co-sponsor) California Walks (co-sponsor) Safe Routes to School National Partnership (co-sponsor) American Heart Association/American Stroke Association American Lung Association in California Amigos de los Rios Bike East Bay Bike Santa Cruz County AB 2796 (Bloom) Page 6 of ? Bike SLO County Breathe California California League of Conservation Voters California Pan-Ethnic Health Network California ReLeaf Catholic Charities, Diocese of Stockton Center for Climate Change and Health Chico Velo Coalition for Clean Air Comite Civico del Valle County Health Executives Association of California Gamaliel of California Health Officers Association of California Inland Empire Biking Alliance Leadership Counsel for Justice and Accountability Livable Communities, Inc. Los Angeles County Bicycle Coalition Marin County Bicycle Coalition Move LA Napa County Bicycle Coalition PolicyLink Public Advocates, Inc. Rails-to-Trails Conservancy San Diego County Bicycle Coalition San Francisco Bay Area Rapid Transit District Santa Barbara Bicycle Coalition Silicon Valley Bicycle Coalition The Environmental Council of Sacramento Trust for Public Land Walk San Francisco OPPOSITION: California Transportation Commission -- END --